Automotive

The internal combustion engine is rapidly disappearing from the new-car options list in 2030.

After years of continued incremental improvements in lithium-based batteries, combined with extreme weight savings from lightweight materials, a new generation of superefficient electric motors, and advances in automated driving that reduce energy waste, the range of the average battery-electric family crossover has increased to nearly 400 miles on a single charge.

The new generation of fast chargers enables vehicles with depleted battery packs to be 80 percent recharged in the time it takes to down a cup of Tim Horton’s coffee and doughnut, about five minutes.

Even exotic sports cars from Lamborghini, McLaren, Lotus, Ferrari, Jaguar and Borgward are either pure electric or hybrid powered. Hybrid supercars use 800-volt ultracapacitors to provide a burst of power that propels these road-going rockets to 60 mph in two seconds or less.

The internal combustion engine, able to burn either gasoline or diesel and run in either spark ignition, compression ignition or a combination of both modes, fires only the amount of cylinders needed to propel the vehicle. A Ford Everest, for example, may have a 1.5-liter V-6 engine, but it runs on only two cylinders in diesel mode as it cruises down the highway.

You rarely see internal combustion-engined consumer pickups and SUVs in the world’s major cities anymore. That’s because of extremely high congestion and pollution taxes. London’s congestion tax, for example, is equal to $400 per day.

Despite advances in onboard hydrogen storage, fuel cell vehicles still have not caught on. The expense of the powertrain, coupled with autonomous driving hardware, makes fuel cell cars too expensive for mass production.

Industry real estate

The real estate industry is a big business generating billions of dollars in revenue annually, and there are ample opportunities for entrepreneurs to turn a profit. Last year there were approximately 210,000 companies operating in the residential brokerage and management field, which generated $200 billion in revenue; there were 35,000 companies operating in the commercial brokerage and management field, generating $35 billion in revenue.

Real Estate Industry Background

Real estate is a cyclical industry, reacting to macroeconomic trends such as interest rates, population growth, and economic strength. Real estate soared in the post-World War II economic boom of the 1950s, sank in the inflation-riddled 1970s, rose again in the early 1980s until the depression at the end of that decade, and was prosperous again by the end of the century. Low interest rates in the mid-2000s allowed residential real estate to boom even when the economy was slow – until the mortgage crisis hit, and prices collapsed.

However, despite what is happening with the greater economy and real estate prices in general, the real estate industry offers diverse opportunities for the entrepreneur, including some hedges against these trends when they’re moving in the wrong direction!

The real estate industry consists of three primary fields: brokerages, leasing, and management.

Real Estate Brokerage

Real estate brokers bring together buyers and sellers of property, assist in price negotiations, and facilitate the work involved in deals from initial interest expressed through money being exchanged at closing. Examples of services provided include property appraisals and inspections. Generally, the seller of a piece of property pays a commission based on a percentage of the sale price (usually 5 or 6 percent). This commission is split between the buyer’s broker and the seller’s broker.

Since commission is based on property value, brokers make more money for higher-priced deals. The value of a real estate investment is determined by many things – but location is key (“location, location, location” as they say!). Factors controlling the value of a location include public transportation access, the quality of the roads and schools, income levels and the strength and stability of the local economy.

Real estate brokers must be licensed in the state in which they work, and while it is estimated that there are over 1 million licensed brokers, most are either inactive or consider brokerage activity as a secondary line of work.

Some popular real estate franchises are Century 21 Real Estate and Coldwell Banker Real Estate.

Leasing Agents and Management Companies

Leasing agents work with property owners to handle the complexity involved with finding, vetting and signing tenants for their properties – and handling all the paperwork!

Management companies operate buildings and other properties, making sure they are running properly, paying utilities, hiring staff and performing maintenance. Many management companies will also act as leasing agents for the property. Since most property expenses are fixed, maintaining low vacancy rates is critical to management companies profitability.

State of the Real Estate Industry in 2017

The real estate industry is divided into residential and commercial real estate services, although some brokerages and management companies engage in both. Both the residential commercial segments are quite fragmented. In each, the fifty largest companies make up about thirty percent of the industry’s total revenue.

Real Estate Industry Risks

Before considering an investment in any industry, it’s best to be aware of the risks. In the real estate industry these include (but of course are not limited to!) the following:

  • Macroeconomic factors beyond the control of the business owner, such as downturns in the local or national economy
  • Changing demand – a location once coveted can change quickly and properties can become less desirable. Of course, the reverse is also true – skilled selection of properties can reap profits in up and coming areas.
  • Increased supply – building of new properties, and/or newly for sale properties in the area can drive rental or property prices down as well.
  • Changing priorities or requirements for building management companies, particularly for aging properties. For instance, indoor air quality liability can be a serious legal issue, as can required removal of mold growth.

Real Estate Industry Opportunity

More than ninety percent of people use the internet before purchasing real estate, and brokers have embraced online marketing with pictures of properties and virtual tours in order to prime their potential customers. Better educated purchasers, while potentially more discerning, can also speed up the sales cycle by knowing what they want and need.

While there are fears that this will eventually eliminate the need for brokers all together, it’s unlikely to happen anytime soon. There is an expertise and skill to correctly marketing and showing a property – and it takes a lot of time. Property owners, particularly homeowners, can not dedicate the time to sell a home on their own, even with online tools smoothing out the process.

One stop shop services

At Orchestrate, we provide a complete spectrum of services to ensure total back office support and technology solutions to organizations. Our dedicated business units ensure consistent quality and productivity and our multiple delivery centers minimize risk while leveraging local talent. Our vast experience within the outsourcing service industry gives us the strategic advantage of being flexible and open to varied models of delivery and operations.

Outsourcing needs has established itself as a global mainstream strategy for business growth. In this demanding environment our services provides you the advantages as shown in the diagram:


Our service offerings are across various industries and our domain-specific talent, which suits the industry environment, enhances your value proposition as well as your profitability. We seek to provide you the full scope of our services, as well as our expertise in working with complementary technology providers, to deliver integrated solutions that address new and emerging market demands.